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The topic of potential consolidation in global beer resurfaced this morning with the news that A-B InBev and SABMiller are in merger talks.
Euromonitor’s initial reaction on the possible merger of the two world’s biggest brewers – picked up and quoted across trade and business media worldwide – is voiced by Spiros Malandrakis, Senior Alcoholic Drinks Analyst: “Beyond the financial and cost savings side of such a potential deal, there is little doubt that macro-beer is now gazing at the event horizon of the merger and acquisition era. As the craft movement is coming of age and solidifies its position as a key disruption force within beer and the entire alcohol industry, corporate consolidation can perhaps provide some last drops of stock market intoxication but will remain largely irrelevant to the scores of millenials seeking alternatives to big beer’s offerings. Innovation and small scale experimentation will decide future growth trajectories if not respective size and margins.”
The possible merger between the two beer giants is not a new topic for Euromonitor. Most recently possible changes to competitive landscape were discussed and analysed in Advantage of an A-B InBev/SABMiller Merger Lies in Emerging Markets.